October Sell-Off Continues

Morning Report: 09.00 London

• October continues to be a poor month for financial markets as the S&P 500 suffered heavy selling yesterday. Today, we’re seeing something of a rebound, but it’s barely covered half of yesterday’s losses.
                                                                    

                               

• The dollar index is also attempting a recovery and is generally being more successful as the dollar pairs fell the pressure this morning.

                               
                                                                                                                                                                   
• The USD/CAD and USD/JPY are pushing higher as the dollar re-asserts itself.

                               

                               

• Elsewhere, the dollar index is on the back foot, with the EUR/GBP giving ground after a large gain yesterday.

                               

• Gold is also peeling back slightly, but the recent up swing seems to be intact…for now.

                               

Coming up today:

• Coming up today we have UK CPI at 09.30, with the headline inflation measure expected to drop to 1.4%. HPI, RPI and PPI are released at the same time, with drops expected in each. HPI levels are expected to rise however.

• At 10.00, we have the latest German ZEW economic sentiment data, with industrial production and EU wide economic sentiment released at the same time.

Trade Idea:

Gold looks to be running a little hot in the short term, which could lead to some downside in the coming days.

                               

A good way to play this is a LOWER trade predicting that gold will close below $1225 in 3 days time for a potential return of 180%.

This is presented as an idea to stimulate fixed odds financial betting ideas and is not financial advice. 

Summary: